Prepared by: ERICA E.
MACAYAN
THE POTENTIAL
MARKET AND THE
MARKET NEED
Potential market- part of market you Penetrated market- customers who are
can capture in the future. Total already using a particular product or
addressable market (TAM) service
Target market- potential customers to Existing customers- customers who have
whom a company want to sell its purchased or used an organizations'
products and services. goods or services
Available market- porspects who are Prospects- are people who have not yet
willing and capable of buying a particular purchased your product but are
product or service. considering it.
2 ways to analyze narket need
Qualitative assessment Quantitative assessment
ways of gathering information tools focus on countable
that yield results that cannot values. They evaluate the
easily be measured by or individual skills, knowledge, and
translated into numbers. They performance based on specific
are often used when you need standards by matching
the subtleties behind numbers – outcomes with goals. This is
the feelings, small actions, or given in the form of objective
pieces of community history exams with multiple choices or
that affect the current questions that require short
situation. answer.
market analysis
a quantitative and qualitative
assessment of a market. It looks into
the size of the market both in volume
and in value, the various customer
segments and buying patterns, the
competition, and the economic
environment in terms of barriers to
entry and regulation.
main customer needs
Price-the amount of money that has to be Choice-it the act of making or selecting a
paid to acquire a given product. It is a decision when faced with two or more
measure of value products or service providers
Quality-it is the degree to which the Convenience-an element of customers’
product or service meets the experience that saves the customer time
customers’ and effort
expectation.
Components of market analysis
Customer Description Customer Perception - Market Trends-
- person or company refers to customers’ perceived tendency of
that receives, awareness, their financial markets to
impressions and their move in a particular
consumes or buys a
opinion about a certain
product or service direction over time
business, product, brand
or service rendered
Components of market analysis
Market Projection-a core Market Competition-the rivalry
component of a market analysis. It between companies selling products
projects the future or rendering services with the goal
numbers, characteristics and of achieving revenue, profit and
trends in your target market. market share growth.
Basic Question in Market Analysis
The following table shows the seven basic questions that you must be asked
in preparation for any major market analysis.
How to conduct a Market
Analysis?
1. Determine the purpose of your
study.
2. Look at your industry’s outlook.
3. Pinpoint target customers.
4. Compare your competition.
5. Gather additional data.
6. Analyze your findings.
7. Put your analysis into actions.
Market Analysis
1
Methodologies Survey/Interview is the most preferred instrument for
in-depth quantitative research. The respondents are
asked a variety of questions which are often about their
personal information, their motivation and their
behaviour. It can be conducted via telephone, mail or
personal.
2
Observation technique is probably one of
the best ways of gathering data about
customers in their natural setting without
having to interact or talk to them.
3
Focus Group Discussion (FGD) is one of the most common
qualitative research tools. It is effective in
extracting consumer and non-consumer experiences
regarding products, places or programs. This method
can also be used for generating initial insights.
FGD can be used to address Understanding consumers’
substantive issues such as: perception, preferences, and
behaviour concerning a product
category;
Obtaining impressions on a product
concept;
Generating new ideas about older
products;
Developing creative concepts and
copy material for advertisements;
Securing price impressions; and
Obtaining preliminary consumer
reaction to specific marketing
programs.
Four Key Decisions to be 1. Respondents Selection
made in FGD Definition of respondents.
Classification of respondents; and
Screening of respondents
2. Sample size
3. Data gathering
Selection and preparation of the venue and
equipment;
Formulation of the discussion agenda; and
Drawing out significant insights from the
participant.
4. Data Analysis
Integration of the information gathered;
Some observations on respondent’s
behaviour; and
Listing of recommendations and report
writing.
Nine steps in conducting 1. Develop research objectives;
FGD 2. Determine the participants profile;
3. Determine the appropriate
compensation/token for the
participants;
4. Develop participants; screener
questionnaire;
5. Recruit the participants;
6. Select good facilitator;
7. Develop facilitators discussion guide;
8. Arrange for the venue and logistics;
and
9. Analyze the results of the FGD.
Methods of Generating New Product/Services
1. Focus Group - A moderator leads a group of 8-14 participants through an open, in-depth discussion
in a directive or non-directive manner. This is an excellent method for
generating and screening ideas and [Link] allows people to be stimulated to greater creativity.
2. Brainstorming - Good ideas emerge when the brain storming effort focuses on a specific product or market
area.
Rules of Brain Storming:
No criticism of ideas or suggestions. Every idea even the wildest non-feasible idea is accepted;
Freewheeling discussion is encouraged;
Quantity of ideas is desired; and
Combinations and improvements of ideas are encouraged.
3. Problem Inventory Analysis - Consumers are provided with a list of problems and are asked to identify
products that have those problems. Results must be carefully evaluated as they
may not actually reflect a new business opportunity.
Sources of New Product/Services
1. Consumer - Monitor potential ideas and needs from customers and formally
arrange for consumers to express their opinions.
2. Existing Products and Services - Analysis of Products and services uncovers ways to
improve offerings that may result in a new product or service.
3. Distribution Channels - Channel members can help suggest and market new products.
4. Government (patent office) - Files of the Patent Office can suggest new product
possibilities.
5. Research and Development - Conduct research on your market and your customers’
needs. This results to the development and identification of new and improved product
and services.
Generating New Product/Services for Conventional or Innovative Businesses
1. Conventional business scenario
a. Start a business that you are familiar with;
b. Start a business due to the needs of existing business contacts;
c. Gain business inspiration from your hobby or interest;
d. Gain inspiration from imported items; and
e. Explore the possibility of import business.
2. Innovative business scenario
a. Gain inspiration from the needs and wants of the costumers;
b. Gain an inspiration from the problems and issues that bothered you and
your peers;
c. Study the usual or existing solutions and venture in the alternative
solution; and
d. List down existing products and find out their other uses from what
was stated.
thank you